How can power factor affect electrical efficiency?

Higher power factor improves efficiency because it indicates that a larger proportion of the electrical power supplied is being effectively converted into useful work or output. The power factor is defined as the ratio of real power (the power that actually performs work) to apparent power (the total power supplied from the source). When the power factor is high, it means that most of the consumed power is being used effectively, resulting in less wasted energy.

In practical terms, a higher power factor minimizes the amount of reactive power in the system, which does not perform useful work but is still part of the total electrical load. Systems with low power factors may require larger conductors and higher capacity transformers to handle the increased apparent power, leading to higher costs and energy losses. Thus, maintaining a high power factor enhances the overall efficiency of electrical systems by reducing these losses and optimizing the usage of the available electrical energy.